SunPower Files for Chapter 11 Bankruptcy

SunPower, a prominent rooftop solar installer, has filed for Chapter 11 bankruptcy protection, grappling with high interest rates and serious allegations regarding its financial reporting practices. The company's stock plummeted nearly 44% on Tuesday, closing at just 45 cents per share, marking a staggering decline of over 90% this year. In its bankruptcy filing with the U.S. Bankruptcy Court for the District of Delaware, SunPower reported assets and liabilities ranging between $1 billion and $10 billion, with TotalEnergies identified as its largest stakeholder. In a bid to stabilize its finances, SunPower is in the process of selling its Blue Raven Solar and new homes businesses, along with its non-installing dealer network, to Complete Solaria for $45 million, pending court approval. The company has requested that the court expedite the approval process by mid-September. Additionally, SunPower plans to liquidate its remaining assets throughout the bankruptcy proceedings. The residential solar market has faced significant challenges due to rising interest rates, which have dampened consumer demand and left companies like SunPower with excess inventory. Compounding these issues, SunPower's stock faced further pressure following allegations of misconduct in its financial reporting. The U.S. Securities and Exchange Commission issued a subpoena in February, seeking documents related to revenue recognition practices from 2023. The situation worsened when SunPower's independent accountant, Ernst & Young, resigned in June, citing concerns over potential misconduct by senior management regarding the company's financial statements.